For each of the following independent circumstances, calculate the SUTA tax owed

Question

For each of the following independent circumstances, calculate the SUTA tax owed by the employer. Assume a SUTA tax rate of 3.4% and a taxable earnings threshold of $8,500.

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:Toy Warehouse employs three workers who, as of the beginning of the current pay period, have earned $18,200, $7,975, and $3,000. Calculate SUTA tax for the current pay period if these employees earn taxable pay of $1,250, $1,900, and $975, respectively.

SUTA tax = $

2:Athletic Engineers Corp. employs two workers who, as of the beginning of the current pay period, have earned $9,500 and $6,590. Calculate SUTA tax for the current pay period if these employees earn taxable pay of $2,450 and $1,250, respectively.

SUTA tax = $

3:Cut Above Co. employs 194 workers who, for the current pay period, earn total taxable pay of $481,535. Of this amount, only $18,350 are subject to SUTA tax, as this is the portion of individual employee earnings that does not exceed the $8,500 threshold. Calculate SUTA tax based on these earnings.

SUTA tax = $

Explanation / Answer

1 SUTA tax = (8500-7975)*3.4%+(975*3.4%)= 51 2 SUTA tax = 1250*3.4%= 42.5 3 SUTA tax = 18350*3.4%= 623.9

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.